The White House continues to talk about the success of the Affordable Care Act aka Obamacare.  I think it was said that $500 million in rebates were awarded to 8.5 million Americans.  And it was said that that saves you Money.  Well I must beg to differ.  I got my rebate in the mail yesterday.  It was $13.  So according the law, my premium was about $1 per month too high.  You got to be kidding me.  My premium continues to go up at a clip of about 15% per year, this year was $41 per month and I get a $13 rebate.

Yes, this law must be saving me money.  I have to pay more for my insurance for preventive care, which I have not needed to use yet ( one of my kids did need a school physical which was covered at 100%).  The actual cost of that visit was just over $100.  I would much rather sacrifice that expense and save $50 per month on my premium.

Now, you need to understand that insurance companies can not predict what their claims expense will be from year to year.  Some years they spend more than others.  If you just think in your own household.  Some years, you do not spend much, some years your car, hot water heater, both break and you need a new coat of paint on your walls.  That year you will spend more.  To avoid going into bankruptcy, you need to prepare for the worst every year.

So even if the insurance carriers did not have to give rebates, you could still expect the rates to go up.

Now this could even get worse.  When we talk about subsidies.  I compare that kind of to Group Health.  Many people have no idea what group health insurance costs.  They know what comes out of their paycheck.  They do not know what the company is paying.  Let’s assume the company is paying half of it, and for simple math, lets just say they are taking $100 per week from your check.  You are thinking it cost $400 per month, but in actuality it is costing $800 per month.  You do not see the real cost.  Could the subsidies do the same??  If it is paid directly??  I am not positive on how that will work, but we might see insurance rates rising even faster, and not even be aware.

Eric Wilson

www.iSellHealth.com